MAT inclusion of PE income 

Facts: 

Assessee earned income from its Permanent Establishment's in Malasyia and Srilanka which were offered to tax in those countries and thus pleaded that the same cannot be included under MAT provisions adopting a back door entry especially when DTAA do not permit the same to be taxed once again for MAT purposes. CIT(A) conceded the case under MAT provisions by excluding the PE income from tax. Aggrieved revenue went in appeal -

Held against the revenue that income taxed as per DTAA PE provisions cannot be considered for MAT purposes adopting a back door entry when the DTAA does not permit its taxability once again. For normal computation provisions inclusion and then relief from doubly taxed income is to be adopted.

Applied: Assessee's own case of earlier years.

Bank of Tokyo-Mitsubishi UFJ Ltd v. ADIT (2014) 152 1TD 796 (Del.) : 2014 TaxPub(DT) 3990 (Del-Trib)

Case: Ircon International Ltd. v. Addl. CIT 2023 TaxPub(DT) 953 (Del-Trib)